ABSTRACT
The compensation systems in public organizations should deliver, pay, and provide benefits that attract and retain a competent workforce, build motivation, and control costs. Most public organizations have traditional, job-based pay structures and reward seniority; however, emerging approaches such as broadbanding and skill- and competency-based pay are gaining increasing acceptance, along with individual and group incentive programs to reward performance. In the area of benefits, conventional health insurance and defined benefit retirement plans still predominate, but escalating costs are a major problem, and many organizations are considering less-expensive alternatives including managed care and defined contribution retirement plans.
